Anastas Gegov

Liquidmetal Technologies Inc (OTCMKTS:LQMT) Keeps The Downward Course

by Anastas Gegov March 11, 2015

Liquidmedal Technologies Inc (OTCMKTS:LQMT, LQMT message board) made some decent gains in the second half of February, but unfortunately, the ticker has been sliding recently and the daily volumes have also dropped.

 

In the most recent session, the ticker lost a total of 10.83% of its value and closed at $0.14. We saw more than 2.860 million shares change their owners that managed to generate around $422 thousand in daily dollar volume.

 

Although, being one of the well-equipped OTC entities with impressive numbers contained in LQMT’s financial reports, the latest filing is disappointing in several ways and might be the reason for the recent bad performance of the stock. Let’s take a look at the numbers contained in the balance sheet for the yearly period ended December 31, 2014 so we can elaborate.

 

  • cash: $10 million
  • current assets: $10.4 million
  • total assets: $12.28 million
  • current liabilities: $860 thousand
  • total liabilities: $3.72 million
  • yearly revenues: $565 thousand
  • operating loss: $8.93 million

 

On one hand, we can’t deny that the cash reserves of the company have been increased significantly and some of the debt was eliminated. On the other hand, the revenue is 40% lower than that of the previous year, while in the same time the operating loss has increased by more than 45%.

 

But where does LQMT spend most money? The company has spent more than $7.4 million on selling, marketing and administrative expenses. That’s not that bad, right? Wrong! Taking a look at Item 11. Executive Compensation we see that the company’s management team has had a very profitable year.

 

CEO Thomas Steipp’s compensation has more than doubled compared to 2013, while that of the CFO and the Executive Vice Presidents has gone up by more than 40%. Now that’s management – doubling your pay while your company is generating 40% less revenue. To be more specific, the total amount of compensation that management received in 2014 was $3,790,997 compared to $1,857,188 in 2013. Mr. Steipp’s compensation was $1,739,469, or nearly three times bigger than what his company has generated as revenue during the year.

 

You can easily figure out on your own if the management team cares more for the well-being of the company and its shareholders or their own pockets by these numbers alone.

Comments 2

1. Guest
February 16, 2016, 03:59PM

Quotes Anastas,

I know that a number of people would be very grateful if you were to update this article with a 2016 view ... I found your article last year of great value and appreciate the effort.

THANKS !

2. Guest
March 13, 2015, 12:56PM

Quotes

In all my years of business, I don’t remember needing to make a good “business decision” that wasn’t consistent with Biblical guidance. Over the years, I’ve observed that integrity is always a choice – not a situational outcome.”

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